what does it mean for travelers? – .

what does it mean for travelers? – .

Turkey’s currency continues to decline – losing value in early trading on Wednesday as financial markets reacted to government interest rate moves.
Over the past three years, the Turkish Lira has lost 70% of its value against the British Pound, dropping from around five to 17 pounds.

Turkey was taken off the UK’s “red list” in October, prompting a surge in visitors. But what are the implications of the devaluation for UK travelers?

What is the situation of travelers in Turkey at the moment?

Financial markets are unimpressed by the eccentric behavior of President Erdogan, who has declared a “war for economic independence” and reduced interest rates rather than raising them, which led to a massive sale of the pound. Turkish.

Anyone who changes money “little and often” will find that it is suddenly much richer, with money changers offering much better rates than last week. While the crisis will stimulate inflation, prices are not yet rising in response to the collapse.

When will prices start to rise?

Traders (and consumers) have become accustomed to prices that rise steadily as the Turkish lira falls. The higher import costs will take time to be felt. For more expensive tourist items, such as accommodation, prices are likely to be quoted in euros – the preferred hard currency of Turkish companies.

I travel to Turkey. How to organize my finances?

Do not exchange your money for Turkish Lira in UK. While the Post offers a decent rate of £ 15.9-1, the currency is likely to deteriorate even further ahead of your trip.

Instead, grab sterling tickets and look for the best deal when you’re there. Change little and often: partly because the rate could improve further against the British pound during the day, and partly because you don’t want to be stuck with the Turkish currency at the end of your trip.

You will definitely get at the airport a worse exchange rate than the one you had when you got the original read.

Does the currency crisis signal a risk of wider unrest?

Currency crises are nothing new in Turkey; in 2005 the old turkish lira was so low that you could become a millionaire by changing 40 pence, until six zeros were removed from the pound and a ‘new pound’ was thrown.

Protests in the largest city, Istanbul, and the capital, Ankara, could intensify. The Foreign Ministry warns: “Sporadic protests are taking place in cities across Turkey, some of which have in the past turned violent.

“In Istanbul, previous protests have centered around Taksim Square and Istiklal Street. In Ankara, the protests mainly took place in the central district of Kizilay around the Turkish Parliament.

“In Izmir, the focus was on the city center, near the waterfront.”

I am going to Turkey next year. Should I buy now to take advantage of declining currencies?

You could lock the read in the hope that it will rise in value, but you will be placing a bet – with a high risk that you will lose heavily on the bet.

I don’t plan on buying Turkish lira until I am in Turkey and need it.

With inflation rates going on and no sign of a change in the President’s behavior, I predict his value is only going one way: down.

Will vacations in Turkey be cheaper next year?

Big vacation companies like Tui and Jet2 have already negotiated deals in Turkey, with payments mostly in euros, so substantial changes in package vacation prices are unlikely.

Spending money can go further if inflation is lower than depreciation.


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